April 12, 2021

 

Australia's beef exports down 11% in March 2021

 

Australia's March beef exports amounted to 83,438 tonnes, a 11% drop year-on-year and hitting a ten-year in-month low, according to Beef Central.

 

The dramatic decline in rates of slaughter across eastern Australia as a result of a return to more favourable seasonal conditions, and the impact on breeder numbers from continental-scale drought since 2019 has seriously hampered the country's beef export activity so far this year.

 

Last month's figures were the lowest March recordings seen in DAFF's monthly shipment data, stretching back to 2012.

 

Shipment figures for the first quarter (January-March) this year tell a similar story, with exports reaching 199,859 tonnes - some 66,200 tonnes or 25% less than the same three-month period last year, and the year before.

 

All major export customer countries have been impacted by Australia's production decline.

 

Japan's volumes in March are typically somewhat restrained, as the country's new financial year starts on April 1, including the activation of progressively lower tariffs on beef under the Australia-Japan Free Trade Agreement. Tariffs on chilled and frozen Australian beef under the CPTPP from last week fall to 25%, down from 25.8% last year, and 27.5% three years ago. The number progressively falls over the next decade, reaching just 10.8% by 2032.

 

As a result, March exports to Japan this year reached 20,130 tonnes, down 25% from more than 26,000 tonnes this time last year. First quarter (January-March) volumes this year have hit 50,549 tonnes, securing Japan again as Australia's largest export customer, by both volume and value.

 

Meanwhile in March, the United States took 12,680 tonnes of Australian beef, mostly frozen trim. While representing a 29% rise on particularly small February shipments, March volumes were back 26% on this time last year.

 

Australia's first quarter shipments to the US were historically low - possibly the lowest seen since the aftermath of the discovery of BSE in the US back in 2003.

 

Australia's total January-March volume to the US reached just 29,521 tonnes - a dramatic 44% decline on the same period last year, as Australian beef continues to look expensive in global comparisons.

 

The third largest export market, China, showed some encouraging recovery in March, reaching 14,929 tonnes, up 28% on the previous month, but still 3,400 tonnes or 19% lower than March last year. Calendar year to date, exports to China have reached 35,772 tonnes, some 20,000 tonnes or 36% behind the same period last year.

 

South Korea has proven to be one of Australia's most stable export customers in 2021, taking 15,680 tonnes last month, up 19% on March last year. First-quarter shipments have reached 36,713 tonnes, virtually the same as last year.

 

- Beef Central